DARTMOUTH, NS – Newfoundland Capital Corporation recorded a 148% increase in profits for 2013, while revenues rose by 3%.
The radio broadcaster said there were several factors impacting profit year-over-year which at $27.0 million was $16.1 million higher than 2012. The company recognized a gain on disposal of its operation is Fort McMurray, AB station, benefited from lower mark-to-market unrealized losses in addition to a $5.3 million reduction of the income tax provision. In contrast during 2012, the company recorded a net impairment charge of $6.6 million, and $2.2 million of mark-to-market unrealized losses which negatively impacted profit.
Revenue for the year ended December 31, 2013, was $132.6 million a 3% ($3.3 million) increase over 2012. This improvement came from a combination of organic growth and incremental revenue from the acquired property in Sydney, NS and the new FM stations launched in Fredericton and Miramichi, NB.
Earnings before interest, taxes, depreciation and amortization (EBITDA) dipped 1% ($0.2 million) from last year to $33.2 million as a result of higher operating expenses in the broadcasting segment due to incremental costs associated with the acquisition and new station launches, costs associated with re-branding a station in Nova Scotia, higher advertising expenses and increased variable costs related to higher revenue and inflation.
For the fourth quarter, profit increased 39% ($2.9 million) to $10.3 million over the same period last year, revenue improved 2% ($0.6 million) to $35.6 million, and EBITDA dropped 6% ($0.7 million) to $10.3 million.
"The company maintained a healthy 3% revenue increase over last year in contrast to the radio industry which experienced flat growth in 2013", said president and CEO Rob Steele, in a statement. "2014 will be a transformational year for us having entered into the largest acquisition in the company's history to acquire radio stations in Canada's largest markets, Toronto and Vancouver. If approved by the CRTC, management's attention will be focused on effectively integrating the operations of these radio stations so that results are accretive immediately."
Newfoundland Capital Corporation holds 89 radio licences across Canada.
